EOW freezes NSEL bank accounts; exchange defaults 7th time

SummaryThe NSEL defaulted on its committed weekly payout for the seventh consecutive time on Tuesday after the accounts were frozen.

bank accounts of the accused involved," he said.

The Ministry of Corporate Affairs has ordered inspection of accounts of NSEL and its promoter entity FT. A senior ministry official said it is checking if these entities violated any rules under the Companies Act.

NSEL has been facing problems in settling Rs 5,600 crore dues of 148 members/brokers, representing 13,000 investor-clients, after it suspended trade on July 31.

The EOW has charged NSEL promoters, directors and defaulters with cheating, forgery, breach of trust and criminal conspiracy, among others.

Police teams, which started raids at as many as 184 locations yesterday morning, completed searches at 54 sites and claimed to have collected crucial evidence.

"The raids at remaining locations are under way. It is a very tedious task and would take a few days to complete the searches," Sinha said.

Eight warehouses were sealed, Sinha said, adding, "Some commodities were found in a few of the warehouses."

Places raided include the house and office of Nimish K Patel, Chairman of NK Proteins - a key debtor of NSEL - in Ahmedabad, another officer said.